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At the same time that Sony was struggling with the Chromatron project, one of Ibuka's long-cherished dreams was realized when the first VTR for home-use was completed.
 A 60kg VTR costing millions of yen just doesn't match my belief in serving the consumer, said Ibuka. He was not satisfied with the PV-100, despite its relative compactness -- one fiftieth the size of conventional VTRs. Ibuka insisted on a VTR that would be suitable for home-use both in terms of size and price.
In response, Kihara desperately worked to develop the CV-2000. Announced in October of 1964, the CV-2000 was a 2-rotary head unit which used a half-inch tape. At 15kg, it was not much heavier than the average tape recorder. And the all-important price tag had dropped to 198,000 yen from the 20 million yen charged for the broadcast model and the 2.5 million yen for the institutional model. In their efforts to down-size the machine, everything from the motor to the processing techniques of mechanical parts was refined. In addition, a unique  field skip recording system was incorporated to keep the price low.
Ibuka proudly announced, This CV-2000 is not an imitation of some other company's product. It was born and nurtured wholly at Sony. Making products that revolutionize our lives is Sony's hallmark. Pleasure and value.
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The whirlwind of events did not stop there. In January of 1965, IBM, the most respected computer company in the world with 70% of the world market, contracted Sony to provide technical assistance in the production of magnetic tape for computer use. The industrial world was astonished that IBM asked Sony for technical help.
Initially, IBM had set their sights on the Hi-D metallic magnetic tape for audio and visual recording and measurement. This tape had been jointly developed by Sony and Tohoku University. Instead of using magnetic ferrous oxide like conventional magnetic tapes, the tape used an alloy powder consisting of nickel, cobalt and iron which resulted in high magnetic flux density and high coercivity. It was called Hi-D, or high-density tape, because the packing density was extremely high.
Until then, 3M, a leading American tape company, had produced all of IBM's magnetic computer tape. As performance levels in computers improved, however, the recording limitations of conventional tapes became apparent. IBM felt the need to produce its own tapes. At the same time, they were pressed to develop a replacement for traditional tape. At this point, IBM chairman Thomas Watson visited Sony's head office in Tokyo.
I've seen your tape. If we had the technology, I'm sure that we could make tape for computer use. Watson told Morita that he was interested in starting a joint project with Sony. Watson continued, I propose we start a 50-50 joint production venture. I don't care if it's located in Japan or the U.S. IBM will buy all the tape made at the plant.
It was not a bad deal, although some Sony staff members raised objections. It's dangerous dealing with only one customer. What would we do if they tried to push prices down? This made sense. The joint venture proposal was called off.
IBM, however, was determined. If you wouldn't accept a joint venture, then consider building us a plant in the U.S. Sony agreed, and in November 1965, it signed a contract with IBM in which Sony would provide the production technology for magnetic computer tape and undertake joint research on a new magnetic tape medium. In January 1966, Sony started providing technical assistance to IBM with Japanese government approval.
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